Experts have pointed to the products' ease of use as reason for their popularity
Assets invested in exchange traded funds
(ETFs) and exchange traded products listed around the world
totalled $3.41 trillion at the end of the third quarter, making
the industry larger than the hedge fund industry, which has
$2.97 trillion under management, according to data from
"Hedge funds on average have been
underperforming the S&P index last year and in the
beginning of this year. In general, investors
don’t mind paying for alpha, but with a 2/20 fee
structure, limited liquidity and limited transparency, I
believe they are concerned and moving their money to exchange
traded funds," Deborah Fuhr, co-founder and managing partner at
ETFGI, told FOW.
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